LIANHUA (00980): Bailian Group and Shanghai Bailian Group Incorporated have entered into a termination agreement to terminate the custody arrangement related to the shares of the company.

LIANHUA (00980) announces that the company's board of directors has learned that Bailian Group Co., Ltd. (Bailian Group) and the company's major shareholder Shanghai Bailian Group Incorporated entered into the "Termination Agreement on the Custody of Shares of LIANHUA Co., Ltd. between Bailian Group Co., Ltd. and Shanghai Bailian Group Incorporated" (the Termination Agreement) on August 28, 2026, to terminate the custody arrangements related to the companys shares as established under the "Custody Agreement between Bailian Group Co., Ltd. and Shanghai Bailian Group Incorporated" (the Custody Agreement) signed on April 17, 2015. According to the Termination Agreement, from the effective date of the Termination Agreement, the Custody Agreement is terminated, and Bailian Group will no longer entrust the management of its 614,160,000 shares (the Custodied Shares) in the company to Shanghai Bailian Group Incorporated. The rights and obligations of Bailian Group and Shanghai Bailian Group Incorporated under the Custody Agreement will cease, and both parties will no longer be bound by the Custody Agreement. From the effective date of the Termination Agreement, Bailian Group shall enjoy and exercise all shareholder rights of the Custodied Shares independently and in accordance with the law, and Shanghai Bailian Group Incorporated will no longer hold or exercise any shareholder rights related to the Custodied Shares. According to the Termination Agreement, the Termination Agreement is established upon the mutual signatures of Bailian Group and Shanghai Bailian Group Incorporated and shall take effect upon the fulfillment of the following conditions: (1) the board of directors of Bailian Group has reviewed and approved the termination of the equity custody matters; (2) the board of directors of Shanghai Bailian Group Incorporated has reviewed and approved the termination of the equity custody matters; (3) the shareholders' meeting of Shanghai Bailian Group Incorporated has reviewed and approved the termination of the equity custody matters; and (4) all parties have obtained the necessary prior filings, approvals, and consents as required by laws, regulations, and relevant regulatory authorities (if required). As of the date of this announcement, the foregoing conditions (1) and (2) have been met.